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Sunday, 25 September 2011


First let me state that I was amazed a few weeks ago when I saw American politicians in deadlock and wait to the very last minute before passing a treasury bill to ensure their debts would be paid on time. That i saw as being totally irresponsible on the part of all the legislators in their Congress...despite that I don't really understand their system. Then if media reports were correct...they went on holidays before passing a Bill to allow payment of wages for their Airport staff...another big confidence blooper.
Now it seems that Obama wants to increase taxes on the rich to help reduce deficits and pay for Medicare for the poorest in their society of which I would say the percentage would be substantial compared to Australia. Apparently there are many are ramifications for private insurers so i cant analyse the issues appropriately. My comments can only be a superficial analysis of cause and effect of taxing the rich.
The American politicians against increasing the taxes of the rich are actually assisting the rich in becoming poorer as we speak .... just as the Greek government in refusing to increase taxes has debased their own currency into default mode. Are the wealthy and middle classes richer or poorer when their stock market collapses and banks wont lend to them ? 
The same applies in the USA .....the answer is to increase taxes of those that can pay so that will help keep the value of all their assets from collapsing to Nil. The ramifications are horrendous if the American politicians don't think outside the square and worry too much about their own political survival. The Congress members themselves should be able to explain the real wealth benefits of increasing income taxes to protect their constituents assets would be a compelling argument surely.

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